Morrisons rejected a takeover bid from a private equity firm, saying the £ 5.5bn value “significantly undervalued” the supermarket chain.

It came after Sky News reported earlier the approach of one of the world’s largest buyout firms, Clayton Dubilier & Rice (CD&R).

In a statement, the supermarket chain said, “The board of directors of Morrisons evaluated the conditional proposal with its financial advisor, Rothschild & Co, and unanimously concluded that the conditional proposal significantly undervalues ​​Morrisons and its future prospects.

“As a result, the board of directors rejected the conditional proposal on June 17, 2021.”

Morrisons said the conditional cash offer of 230 pence per share valued it at just over £ 5.5 billion.

CD&R has confirmed that it “is considering a possible cash offer” and, under UK takeover rules, has until July 17 to announce a firm intention to make an offer.

However, he added that there was “no certainty that an offer will be made.”

Sky’s City editor-in-chief Mark Kleinman has reportedly started contacting banks to fund a potential bid for Morrisons.

CD & R’s interest in the chain isn’t the first time a potential buyer has considered an offer for Morrisons, Kleinman added.

Amazon has been the subject of many rumors as a suitor, with Morrisons being established as a food supplier for the online giant’s Prime Now and Pantry customers.

With a workforce of around 110,000, Morrisons is one of the largest private sector employers in Britain and has a market share of just over 10%.

It is the UK’s fourth-largest supermarket company, behind third-third Asda’s 14.4% share.

He said last month that sales in the 14 weeks leading up to May 9 were up 2.7% on a like-for-like basis, excluding fuel, including a 113% increase in online sales.

Earlier this month, Morrisons was also at the reception of one of the biggest shareholder revolts in British corporate history when 70% of investors voted …

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Source: news.sky.com
This notice was published: 2021-06-19 20:22:00

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